In a significant move to address the critical funding gap faced by the poorest of the poor, the Gujarat government has launched a novel initiative. It has directed state-run public sector undertakings (PSUs) and leading corporate houses to deploy their Corporate Social Responsibility (CSR) funds specifically to assist impoverished families in completing the construction of their homes under the Pradhan Mantri Awas Yojana (PMAY).
The Core Problem: Even With Subsidies, Houses Remain Unfinished
Despite substantial financial incentives provided by both the central and state governments under the PMAY for rural and urban poor to build pucca houses on their own land, a persistent hurdle has emerged. Government data reveals that while around 1.7 lakh constructions are currently approved and ongoing under PMAY and related schemes in Gujarat, approximately 7,000 identified beneficiaries have been unable to move forward. The primary reason is their extreme poverty, which leaves them incapable of arranging their mandatory share of the construction cost, even after the government sanctions the bulk of the funding.
The Government's Corporate Outreach for a Social Cause
To directly plug this monetary gap, the state administration has turned to the corporate sector. Last week, Chief Secretary Manoj Das convened a high-level meeting in Gandhinagar with representatives from all state PSUs and several of Gujarat's industrial giants. The list of companies included:
- Reliance Group
- Adani Group
- Torrent Group
- Deepak Nitrite Ltd
- Atul Limited
- Maruti Suzuki India Ltd
During the meeting, a clear appeal was made: to contribute their CSR resources towards the construction of houses for these stranded beneficiaries, particularly in rural areas.
Agreement Reached: Funding and Technical Support
Sources familiar with the developments confirmed that the response was overwhelmingly positive. All attending PSUs and leading companies have agreed to the proposal. They have committed to directly funding government-approved beneficiaries to help them finish their constructions. The agreed-upon support includes:
- Financial aid of up to ₹1 lakh per beneficiary.
- On-ground technical assistance through their local staff to ensure the houses are completed properly.
This public-private partnership model aims to ensure that the dream of owning a home becomes a reality for thousands of families who have been left behind due to a lack of personal funds. By leveraging mandated CSR spending, the government has created a targeted mechanism to address a specific developmental shortfall, setting a potential precedent for other states to follow in enhancing the effectiveness of central welfare schemes like the PMAY.
